KEY POINTS:
WITH the increasing proliferation of media and the wealth of visual content being produced locally and globally, New Zealanders should have more choice than ever before as to how they pay for and enjoy their TV and radio.
The recent release of submissions to the Ministry for Culture
and Heritage's Review of Broadcasting Regulation, puts the spotlight again on how and where these programmes and events are accessed.
And it's the integral role Freeview is now playing in creating consumer choice that I want to highlight.
In June 2006, the Government announced decisions paving the way for free-to-air digital television. That began a six to 10-year transition towards an eventual switch-off of the old analogue signals.
The switch-off date set by the Government will be in 2012 or when about 75 per cent of the population has digital instead of analogue TV, whichever comes first.
Freeview was introduced in May last year as New Zealand's free-to-air digital TV and radio platform. Our role is simple: to equitably transition the nation from analogue to digital television by providing access to existing and new broadcast services for all New Zealanders with no monthly fees and no contracts.
The Freeview digital satellite TV and radio service covers all of New Zealand and you can get a Freeview satellite receiver for $199. There's no fee after that initial one-off cost, and 60 per cent of homes already have a compatible dish.
Freeview/HDTM (our high definition- capable terrestrial platform) is available in nine centres - Auckland, Hamilton, Tauranga, Napier, Hastings, Palmerston North, Wellington, Christchurch, Dunedin.
It covers 75 per cent of New Zealand homes and you can get a Freeview/HDTM terrestrial receiver for around $399.
Later this year TVs with Freeview/HDTM receivers built in will go on sale.
We don't manufacture any of the hardware required to receive the Freeview services. But we rigorously test and certify products to ensure that they are easy to install, automatically scan for new channels, and can access interactive TV content including the Freeview eight day electronic programme guide.
The channel line-up on Freeview is increasing rapidly. In a little over a year it has developed to include TV One, TV2, TV3, C4, Maori Television, TVNZ6, TVNZ7, TVNZ Sports Extra, Stratos, Parliament TV, CUE, Te Reo, tvCentral, Radio NZ National, Radio NZ Concert and GeorgeFM.
This equates to 15 channels on Freeview satellite and 12 channels on Freeview/HDTM.
So we've created a world-class infrastructure, the programme offering is growing, we're ensuring accessibility and affordability and we're making sure there is a high standard in reception equipment.
What may be less obvious in the short-term, perhaps, is that Freeview and its broadcast partners are providing public value through the free-to-air provision of local and public service content and providing benefits to audiences as citizens, rather than simply as consumers.
In the 16 television and radio channels is a unique range of local and international programmes that showcase our Kiwi way of life and the best from around the world. Kiwis can now receive a multitude of regional, ethnic, factual and entertainment based content that was previously unavailable.
All this is being done to make free-to-air digital TV and radio and is a compelling proposition for everyone.
But do people want it? Well the early results speak for themselves - in one year alone more than 100,000 digital receivers have been sold. This equates to 250,000 plus viewers who are now enjoying the benefits of crystal clear pictures and sound, and a greater choice of free-to-air TV and radio. This first year take-up is one of the highest of anywhere in the world where a similar service has been introduced.
Now that we've built it and people are tuning in, Freeview's broadcasters can start to offer new digital services and more programme choices when the opportunity arises. A perfect illustration of this is the Beijing Olympics, where TVNZ will not only be broadcasting the Olympics in HD on Freeview/HDTM, but will provide more cover on TVNZ Sports Extra for the duration of the event.
Sadly, however, while this promises to be the best Olympics coverage New Zealanders have seen, it may also be the last time we see full coverage on free-to-air television.
Sky has out-bid the free-to-air broadcasters for the rights, so full coverage of the next winter and summer games will be available to pay-TV subscribers only.
This takes me back to the reason for writing this piece. The public debate as to whether this is good for New Zealand audiences and healthy for the broadcasting industry increased this week with the release of the already mentioned broadcasting regulation review submissions.
It is disappointing that our major sporting bodies and others such as the International Olympic Committee do not see the long-term damage to their sports as a game and a business by putting all their eggs in the Sky basket.
I hope we will see the Government taking a stand as seen in Europe, where laws have been passed unbundling sports. This means a sports rights holder cannot sell all its rights to one broadcaster (in one bundle), and stops companies such as Sky using that exclusivity to force consumers to pay high prices to watch major sporting events.
Of course this has created anxiety among leading sporting bodies which is being fuelled by Sky's claims that without it, the sport will die.
A chat to leading football rights owners in Europe would quickly dispel those fears. A bit of clever packaging would ensure that the sports body continues to receive the revenue that helps sustain their sports, while meaning that all Kiwis can see the sporting heroes our children aspire to emulate.
But Freeview is not here to compete head-on with Sky and there is no - as some media commentators would have it - "platform war".
There is a role for pay-TV and it can provide a compelling service (and make healthy profits) at reasonable prices without exclusivity.
Freeview was created to provide consumer choice in digital TV access and as a result viewers can now choose to have free digital TV or pay digital TV.
It is vitally important that we have a healthy, robust and competitive broadcast environment as there is a real need for choice as to how, when and from whom we receive media.
Without access choice, we face a monopoly (or gatekeeper) situation similar to the one we have seen up until now in telecommunications. It stifles innovation, reduces investment, and ultimately means viewers will pay higher prices than they would in a competitive industry.
Is this a situation we want perpetuated in the broadcasting industry?
Unfortunately, this is a real and present danger. Sky has a monopoly in pay-TV, premium sport content, and a pre-eminent position in digital access. An example of this monopoly behaviour is Sky's refusal to put Prime on Freeview. We would love to see Prime (a Sky channel) on Freeview alongside its free-to-air competitors.
Freeview is part of the answer to Sky's stranglehold on digital access. However, we have only just started and the platform needs time and the opportunity to develop further.
So whether you choose to receive your favourite shows via Freeview, Sky or watch them via the internet, the fact is New Zealand deserves a competitive and world class broadcast environment.
Think about it the next time you sit down and switch on the TV.
* Steve Browning is the general manager of Freeview.
